ADMINISTRATIVE SUCCESSION AND ORGANIZATIONAL PERFORMANCE: HOW ADMINISTRATOR EXPERIENCE MEDIATES THE SUCCESSION EFFECT.

Abstract

Analysis of data for 22 teams in the National Basketball Association (NBA) indicated that succession has no effect on subsequent team performance when prior performance is controlled, a result consistent with those of other studies. However, when the competence of new coaches is included in the analysis, it appears that succession affects subsequent performance. Teams in which succession occurred, and in which (1) the coach had a good prior record, (2) had prior experience in the NBA or ABA, or (3) had brought about performance improvements in other teams, performed better than teams whose new coaches either lacked experience or had performed less well in the past. The results suggest that attempts to estimate succession effects need to consider the competence of successors.